[tlm724] Iraq plans to issue bonds after the adoption of the budget law 01/27/2014 17:12:00 Iraqi Central Bank announced that the banking sector did not lead role in the granting of credit so far.

The central bank governor, Abdul-Basit Turki said in an interview with Arab, Monday, "the need to show the private banks softer more in relation to the profits earned from currency translation differences or letters of guarantee."

Turki said "we have not succeeded yet in diversifying the sources of income of the Iraqi economy."

The Governor of the Central Bank that "there is an intention for the issuance of sovereign bonds after the adoption of a new budget law," pointing out "that the current law does not allow the Minister of Finance to issue sovereign bonds of the State of Iraq." http://pukmedia.com/

[Shredd] lightingcslt gm [lightingcslt] Shredd well tlm724 just answered my question [lightingcslt] Central Bank defers issuance of local bonds to the first of next year 27-01-2014 01:57 PM Baghdad (news) .. Central Bank of Iraq, on Monday, all around the issuance of the first local bonds to the next year, 2015, as he emphasized that inflation in Iraq is not a cause for concern. holding the Iraqi Central Bank and headed by Abdul Basit Turki Saeed Conference Financial Iraq in 2014 in Dubai and for the period 27-28 / 1/2014, and with the participation of the banking sector and investment. bank governor said agency Abdel Basset Turki on the sidelines of a financial conference in Dubai: The 'Iraq postponed to next year's plan for the issuance of the first bond has a local currency in ten years', adding that' legal difficulties prevented bond issuance this year as planned. " added Turki he 'unlikely to pose international bonds in 2014', noting that 'the goal of the version is not finance government budget deficits but also to expand the capital markets and diversify the investment options in front of the banks. " In the context of the last confirmed Central Bank Governor that 'inflation is not a cause for concern as it is currently hovering just above the two-percent', pointing out that 'the economy is expected to grow more than eight percent in 2014.http://www.ikhnews.com/index.php?page=article&id=115239 [lightingcslt] Shredd your take? [Shredd] Turki said "we have not succeeded yet in diversifying the sources of income of the Iraqi economy." [Shredd] this part is going to take time as Iraq is nearly entirely dependent on oil Central Bank Governor: pull the licenses of five local banks and the issuance of the first bonds Written by: Citizen newspaper | Print| Hits: 11 Citizen / Baghdad said Abdul Basit Turki governor of the Iraqi Central Bank, "The bank is expected to pull the licenses of five commercial banks are unable or unwilling to increase their capital before the expiration of the end of January. Turki said on the sidelines of a financial conference in Dubai, "The other banks have committed to the decision or took steps but those five banks are not working on it. And pressing the Iraqi Central Bank on private sector banks to increase their capital to 250 billion dinars (215 million dollars) in the context of efforts to strengthen the banking system and raise its efficiency. The previous deadline for the June 2013 but decided to extend the deadline to January 31 January current. According to the central bank website on the Internet working in Iraq 23 conventional banks and private banks, nine private Islamic and seven state-owned banks and 16 foreign banks. He added: "The Iraq postponed to next year's plan to issue the first bonds in local currency him in ten years, while unlikely to pose international bonds in 2014. The government wants the first version of its local currency bonds since the overthrow of the former regime in 2003. Officials said the bonds will be for five years. " The legal difficulties preventing the issuance of bonds this year as planned, but gave no details. The aim of the issue is not financing the government's budget deficit, but financial markets expand and diversify the investment options in front of banks. He said he does not plan to issue international bonds this year, but did not comment on the possibility of doing so in the following years. The governor of the Iraqi Central Bank that inflation is not a cause for concern as it is currently hovering just above two percent, adding "it is expected that the economy will grow more than eight percent in 2014, http://www.almowatennews.com/index.php/2013-04-19-21-18-06/6971-2014-01-27-14-02-57.html [Shredd] which means no diversification -- this is another classic example of differing opinions or spin on news and the hopium addicts choose to believe one side and the pessimists choose to look at another [lightingcslt] to confuse everybody ? [Shredd] well, not in this case,....imo.......just spin/discussion/pundancy [Shredd] from what we saw in the news, the bonds were first supposed to be released in December, that didn't happen then we read that legal issues remain then it will happen after budget law is passed (not budget btw) [tlm724] IMO Turki is getting the conditions just right for the issuance, period ! [Shredd] so, to me, it's not a surprise or terrible news, more that they are continuing to work on it [Shredd] I agree timmy [Shredd] see, the issuance of bonds depends, among other things, climate and I believe that is playing a part here in addition to the possibility of legal issues [tlm724] and I also believe that once the budget is passed, which by the way is a huge step towards economic reform, there are many "first's " in this years budget, we will see the issuance of the bonds, IMO again ! [Shredd] legal counsel is always a part of a debt issuance, so no concern there [Shredd] possible but to me, they are not dependant on one another but yet are related. The release of these bonds are more than the normal situation [tlm724] no I don't believe they are connected what I believe is that one is dependent on the other [tlm724] in other words shredders you can't have one without the other imo [Shredd] all eyes are on Iraq from the investment perspective and the release of these not only need to be done legally and constructed to provide favorable returns, [tlm724] two separate entities depending on each others policies [Shredd] but the climate needs to be just right [Shredd] agreed timmy [tlm724] I am looking for one more art brb [Shredd] what surprises me is the first of 2015 part [tlm724] I don't buy the 2015 sorry [Shredd] which may imply the relationship to fiscal year and/or budget [Shredd] yeah, I'm with you..... [Shredd] doesn't really make sense that its a now or never situation but remember, these are just local, not international bonds, so that may play a part in timing of release.......the underwriter for intl bonds wouldn't want to wait another year 01/27/2014 17:12:00 Iraq plans to issue bonds after the adoption of the budget law Iraqi Central Bank announced that the banking sector did not lead role in the granting of credit so far. The central bank governor, Abdul-Basit Turki said in an interview with Arab, Monday, "the need to show the private banks softer more in relation to the profits earned from currency translation differences or letters of guarantee." Turki said "we have not succeeded yet in diversifying the sources of income of the Iraqi economy." The Governor of the Central Bank that "there is an intention for the issuance of sovereign bonds after the adoption of a new budget law," pointing out "that the current law does not allow the Minister of Finance to issue sovereign bonds of the State of Iraq." http://pukmedia.com/ [lightingcslt] he Governor of the Central Bank that "there is an intention for the issuance of sovereign bonds after the adoption of a new budget law," pointing out "that the current law does not allow the Minister of Finance to issue sovereign bonds of the State of Iraq." [lightingcslt] look at that statement, its the old law with Saddam 2014-01-27 12: 20 The Central Bank pulled the licenses of five banks According to the Central Bank Web site works in Iraq 23 banks traditionally and nine Islamic banks and seven state-owned banks and foreign banks. Baghdad/Obelisk said Abdel Basset Turki said Iraqi Central Bank Governor, said Monday that the World Bank is expected to pull the licenses of five commercial banks are unable to welaraghbh increase the capital before the deadline of the end of January. Said in a press release, on the sidelines of a Conference in Dubai I followed "the Obelisk" that other banks have committed to the decision or taken steps but these five banks are working on it. And the Central Bank of Iraq on private sector banks to increase their capital to 250 billion dinars (215 million dollars) as part of efforts to strengthen the banking system and raise its efficiency. The deadline for the June 2013 but decided to extend the deadline to 31 January. According to the Central Bank Web site works in Iraq 23 banks traditionally and nine Islamic banks and seven state-owned banks and foreign banks. He said when asked about the action to be taken against banks that don't raise their capital by the end of the time limit to their licences withdrawn. And refrain from naming the five banks, adding that there is still some time before the expiration of the time limit. LINK [tlm724] World Bank ! [Shredd] yeah, from the legal side, not a big concern for them to address it's an interesting development to continue to track and it tells me they are close to release [lightingcslt] Shredd release what ? [Shredd] perhaps the delay could be if parliament needs to vote this change [Shredd] ^ release of bonds [lightingcslt] or maybe thats in the budget as well, getting interesting for sure [Shredd] agreed [Shredd] what is cool though once the bonds release is we will learn what kind of appetite for investment (again, local this time) in Iraq is regarding debt issuance [Shredd] we will also learn what kind of returns the investors will get that will be disclosed in the governing documents, we will also learn what the ratings are for the bonds (remember, I said we need to watch this one) and we will see just how much this issuance in the capital market will support currency reform so, I'm looking forward to them being released [tlm724] Shredd I have a question please [Shredd] sure thing [tlm724] said Abdel Basset Turki said Iraqi Central Bank Governor, said Monday that the World Bank is expected to pull the licenses of five commercial banks [tlm724] does the CBI NOT have to ability to do that themselves ? or is the World Bank acting as strong arm here ? or would that be something we wouldn't know ? [Shredd] well, from what I understand, the oversight and compliance backing comes from the WB but I don't fully know the roles and responsibilities between the two [tlm724] so basically they WB is acting as sheriff as far as regulation ? [tlm724] ok ty ! [Shredd] that is my understanding based on what I've read on their site [Shredd] yw -- at it this way: [tlm724] rsp1 yes it sure is [Shredd] escalation for correction, very common when enforcement is required [tlm724] Shredd yes International planning with the backing of said planners [tlm724] in other words lighters the World Bank has Iraq's back [Shredd] the CBI's, yes [lightingcslt] actually I like that art that came out from Turki about the bonds, they always imo do the opposite [rsp1] Thanks, timmy, for posting...lots of articles and reading today, but another day of progress. Tomorrow will be interesting...where will Iraq go with the passing of the budget... [rsp1] TY Light and Shredd for your insightful comments on the bonds. Very helpful in understanding some of the articles. [lightingcslt] rsp1 yw [tlm724] thanks everyone

Barbara

1/27/2014 08:56:29 am

Apparently Iraq is talking about 2 different kinds of bonds--bonds sold for Iraqi Dinar and bonds sold for Dollars. Bonds sold for Dinar to get Dinar out of the money supply--bonds sold for dollars are for cash flow for the government.

I read all of this report! I don't find anything that relates to the Dinar or its RV. What does the issuance of bonds have to with the RV? Am I missing something?

BJBJ

1/27/2014 10:28:27 pm

molliesmom,
Sale of bonds would be another source of income besides oil - which it IMF wants Iraq to have. Yes the bonds will have to be paid back in a later date w/ interest. But the income received from the sales presently would be used for either for loans, various projects, etc.
Also, they're not going to issue bonds at a currency rate of 1166. They are entering the "big boy" world arena of banking.